24 September 2018

X5 opens first Distribution Centre in Karelia

Petrozavodsk, 24 September 2018 X5 Retail Group ("X5" or the "Company"), a leading Russian food retailer (LSE and MOEX ticker: FIVE),announces the opening of its first distribution centre (DC) in the Republic of Karelia.

The Petrozavodsk logistics facility, with an area of 17,500 sq m, will serve 152 Pyaterochka stores located in 62 towns and cities of Karelia and the Murmansk region. Featuring three separate zones with a specific temperature band in each, the facility is designed to store nearly all categories of goods such as fruit, vegetables, perishable products, groceries, etc.

The advanced logistics facility will help ensure that goods are always fresh and available to match the pace of Pyaterochka’s active expansion, thus contributing to lower logistics costs and unlocking new opportunities for local producers. The Petrozavodsk DC will be the focal point for local suppliers, as it will help to increase their sales and bring their products to other regions. The DC will also help cut delivery costs for suppliers. At its full capacity, the Petrozavodsk DC will be able to process and handle products from 230 suppliers. This is expected to boost the percentage of goods made by Karelian producers in the Pyaterochka product mix up to 15%.

The logistics facility helped increase the number of jobs provided by the Pyaterochka retail chain in Karelia by 300, to 1,500 in total.